Public Works Department

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1 Public Works Department SUBJECT: Consideration of two Resolutions concerning replacement of the Village s fuel system. AGENDA ITEM: 9.b.iii MEETING DATE: July 20, 2015 VILLAGE BOARD REPORT TO: Village President and Board of Trustees FROM: Jerry Burke, Director of Public Works, (847) Peter D Agostino, Assistant to the Director of Public Works (847) THROUGH: Todd Hileman, Village Manager PURPOSE AND ACTION REQUESTED: Staff requests Village Board consideration of two Resolutions concerning replacement of the Village s fuel system: 1. A Resolution to waive the Village s competitive bidding requirement and authorize a contract to Burns and McDonnell of Downers Grove, IL, for fuel system project management services in the amount of $22, A Resolution authorizing a contract award to Crowne Industries, Ltd. of Streamwood, IL, for replacement of the Village s fuel system in the amount of $495,690 plus a ten percent (10%) contingency, for a total budget of $545,259. The total of both requests, including contingency amounts, is $567,859. BACKGROUND/DISCUSSION: The Village of Glenview s fuel system, located at the Public Service Center, contains three underground fuel tanks, four fuel dispensers and other components necessary to provide fuel to the Village s fleet and its external customers which includes Glenview Public School District 34, the Village of Golf Police Department, the Glenview Park District, the Northeastern Illinois Public Safety Training Academy (NIPSTA), and the Mutual Aid Box Alarm System (MABAS) Division Three. The fuel system was originally installed in 1987 and has since undergone minor repairs over the last 28 years. Given the age and the appearance of some of the fuel system components, staff sought the assistance of an engineering firm last year to perform an evaluation of all physical components of the Village s fuel system. The evaluation was awarded to and performed by Burns and McDonnell, an engineering firm from Downers Grove, Illinois. Evaluation of Fuel System The evaluation described the fuel system as being in marginal condition and listed each component of the fuel system and the approximate remaining useful life based on engineering judgment, 1

2 common equipment grade life expectancy, or a combination of both. The FuelMaster hardware which manages fuel distribution and the Veeder Root hardware which monitors fuel tank levels were both installed after 1987 and are not in need of replacement. The evaluation listed the three underground fuel tanks as being two years away from the common equipment grade life expectancy, but recommended televising the tanks in order to gain an engineer s judgment. Finally, the remaining components of the fuel system, which includes items such as fuel dispensers and pumps, were determined to have exceeded their useful life based on common equipment grade life expectancy and engineering judgment. Burns and McDonnell recommended a series of repairs, upgrades, and replacements, some of which were recommended to be completed within the next year. However, before moving forward with any repairs, staff hired a company to televise the three underground fuel tanks and Burns and McDonnell reviewed the tank televising footage showing the inside of the underground fuel tanks. The tank televising footage was concerning in that it showed degraded areas inside each tank. Due to the condition and life expectancy of the tanks, Burns and McDonnell recommended that the Village move forward with the replacement of the tanks in conjunction with the other repairs. Doing so would also result in minor cost savings due to mobilizing a contractor only once and would minimize disruptions to operations. Further, if the tanks are not replaced and a major issue like a leak occurs, the Village will incur not only the replacement costs, but also considerable environmental cleanup costs. As part of this evaluation, it was determined that the three existing 12,000 gallon underground fuel tanks (one diesel and two 87 octane) could be replaced with two 12,000 gallon underground fuel tanks (one diesel and one 87 octane). Doing so would decrease the replacement costs by approximately $75,000. The only consequence would be the need for the 87 octane tank to be filled about twice a month as opposed to once a month. Fuel deliveries are made during normal business hours. Request For Bids (RFB) On May 28 th, the Village issued a competitive bid for the replacement of the Village s fuel system. The bid requested pricing for two 12,000 gallon underground fuel tanks, but also requested alternative pricing and design for one multi-compartment underground fuel tank with equal storage capacity. Burns and McDonnell was hired to perform the design work for the bid as well as assist in the bid evaluation process. The design portion of the bid specified the requirements for the new fuel system including the types of equipment to be used (or an approved equal). The demolition portion of the bid specified the demolition requirements and listed estimated quantities for some demolition activities such as the removal and disposal of contaminated soil. A per-unit rate was also requested to establish predetermined rates for demolition activities that may be greater than or less than the quantities estimated in the bid. For example, 1,250 tons of contaminated soil was the quantity estimated in the bid, but if the tonnage is less than 1,250, the demolition costs are decreased at the per-unit rate. Conversely, if the tonnage is greater than 1,250, the demolition costs are increased at the per-unit rate. On June 25 th the competitive bids were due. The Village received bids from four vendors. A summary of each bid proposal, including the proposed project start and end dates is shown below. 2

3 TABLE 1 - Summary of Bids Bidder Base Bid (2 separate tanks) Alternate Bid (1 multicompartment tank) Project Start Date (proposed) Project End Date (proposed) Accurate Tank $570,870 No Bid Sept 1 Oct 30 Superior $561,000 No Bid Aug 1 Nov 1 Stenstrom $497,669 $509,669 Sept 14 Oct 30 Crowne $495,690 $495,690 Sept 1 Oct 15 Bid Analysis/Recommendation Assistance in the bid evaluation process was included with the design work that was performed by Burns and McDonnell. Evaluation of the bids focused on the following two decisions: 1. Bidder The two low bidders, Stenstrom and Crowne submitted base bids that are $1,979 apart and 11% to 13% less than the base bid amounts submitted by Accurate Tank and Superior. Burns and McDonnell have a prior working relationship with Stenstrom, and the Village has a prior working relationship with Crowne doing inspections and repairs. Additional third-party references came back positive for both Stenstrom and Crowne. Based on this information, Village staff recommends awarding to Crowne based on their low overall bid. Village staff acknowledges that the amount of contaminated groundwater to be pumped from the excavation is the greatest unknown cost. The base bid includes a best estimate of 90,000 gallons, but with the groundwater table established during soil boring and above average rainfall this year, that amount may be exceeded. Based on this information, staff recommends a ten percent (10%) contingency on the project. 2. Base Bid or Alternate Bid The base bid (two separate tanks) price submitted by Crowne of $495,690 is the same price they submitted for the alternative bid (one multicompartment tank). According to Burns and McDonnell, a multi-compartment tank leaves a larger footprint than the two separate tanks and could increase costs, due to the additional contaminated soil and/or water costs that are associated with it. Lastly, both tank options are expected to last about thirty years and operation and maintenance costs over the thirty year period are expected to be equal. As such, Village staff is recommending that the new fuel system has two separate underground fuel tanks (base bid). Project Management Services Given their expertise in this area and familiarity with our fuel system needs, staff recommends retaining the services of Burns and McDonnell at a cost of $22,600 to perform fuel system project management services that include site visits and inspections, meetings during construction and ensuring that all aspects of the project are completed. Alternative Fueling Options During Construction Village staff has been meeting with Village of Wilmette staff over the past month and the Village of Wilmette has offered use of its fuel system during the planned construction project for the Village fleet and its external customers. Wilmette s fuel system is conveniently located just over the east 3

4 Village limits at the Wilmette Public Works facility, is available to dispense fuel 24/7 and has the capacity to accommodate our fuel needs. Wilmette will provide fuel to the Village at cost without a mark-up. Upon approval of the fuel system construction project, Glenview Public Works staff will begin a communication plan to the rest of the Village and our external fuel customers. BUDGET: There are sufficient funds budgeted in the Capital Equipment Replacement Fund (CERF) for both requests. CERF $567,859 RECOMMENDATION: Staff recommends Village Board approval of the approval of the two Resolutions concerning replacement of the Village s fuel system: 1. A Resolution to waive the Village s competitive bidding requirement and authorize a contract to Burns and McDonnell of Downers Grove, IL, for fuel system project management services in the amount of $22, A Resolution authorizing a contract award to Crowne Industries, Ltd. of Streamwood, IL, for replacement of the Village s fuel system in the amount of $495,690 plus a ten percent (10%) contingency, for a total budget of $545,259. The total of both requests, including contingency amounts, is $567,859. APPENDIX: A. Resolution Fuel system project management services B. Resolution - Fuel system construction 4

5 APPENDIX A 5

6 RESOLUTION NO. WHEREAS, the Village of Glenview (the Village ) is a home-rule municipality located in Cook County, Illinois; WHEREAS, the corporate authorities have discussed and considered the replacement of the Village s fuel system (the System ); WHEREAS, the Village is in need of fuel system project management services to assist with the replacement of the System; WHEREAS, Burns and McDonnell, of Downers Grove, Illinois ( Burns ), has expertise and familiarity with the System and has submitted a proposal to perform project management services; and WHEREAS, the corporate authorities have determined that it is in the public interest to waive the Village s competitive bidding requirements and award a contract to Burns for project management services for the replacement of the System. NOW, THEREFORE, BE IT RESOLVED, by the President and Board of Trustees of the Village of Glenview, as follows: The Village President (or his designee) is authorized to enter into an agreement with Burns and McDonnell of Downers Grove, IL, for fuel system project management services in the amount of $22,600. PASSED this th day of AYES: NAYS: ABSENT: APPROVED by me this th day of ATTESTED and FILED in my office this th day of Todd Hileman, Village Clerk of the Village of Glenview, Cook County, Illinois James R. Patterson, Jr., Village President of the Village of Glenview, Cook County, Illinois 6

7 APPENDIX B 7

8 RESOLUTION NO. WHEREAS, the Village of Glenview (the Village ) is a home-rule municipality located in Cook County, Illinois; WHEREAS, a bid notice was issued by the Village on May 28, 2015, for construction services (the Services ) relating to the replacement of the Village s fuel system (the Project ); and WHEREAS, the corporate authorities have discussed and considered bids for the Services; WHEREAS, the corporate authorities have determined that it is in the public interest to enter into a contract with Crowne Industries, Ltd ( Crowne ) for the Services in the amount of $495,690 plus a ten percent (10%) contingency, for a total budget of $545,259. NOW, THEREFORE, BE IT RESOLVED, by the President and Board of Trustees of the Village of Glenview, as follows: The Village President (or his designee) is authorized to enter into a contract award agreement with Crowne Industries, Ltd of Streamwood, IL, for replacement of the Village s fuel system in the amount of $495,690 plus a ten percent (10%) contingency, for a total budget of $545,259. PASSED this th day of AYES: NAYS: ABSENT: APPROVED by me this th day of ATTESTED and FILED in my office this th day of James R. Patterson, Jr., Village President of the Village of Glenview, Cook County, Illinois Todd Hileman, Village Clerk of the Village of Glenview, Cook County, Illinois 8